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Expert Answer • 2 min read

What disclosures are required for discount pricing claims?

As an e-commerce business owner, I'm confused about the legal requirements for advertising discount pricing. I want to ensure my marketing claims are transparent, accurate, and compliant with consumer protection regulations. What specific disclosures do I need to make when promoting sales, comparing original prices to discounted prices, or creating percentage-off promotions? I want to avoid potential legal issues and maintain customer trust while effectively marketing my products.
Muhammed Tüfekyapan

Muhammed Tüfekyapan

Founder & CEO

2 min

TL;DR - Quick Answer

Disclose the original reference price, ensure it reflects a genuine recent selling price, clearly state discount percentage or amount, avoid misleading comparisons, and follow FTC guidelines for comparative pricing and time-limited offers.

Complete Expert Analysis

Legal Disclosure Requirements for Discount Pricing

Navigating the complex landscape of pricing claims requires understanding key legal standards and consumer protection regulations.

Key Disclosure Principles

RequirementDetailsCompliance Standard
Reference PriceMust represent actual recent selling price30-day market price
Discount CalculationTransparent percentage or dollar amountClear mathematical basis
Time LimitationsClearly state offer durationSpecific start/end dates
ExclusionsList any product or category restrictionsProminent disclosure

FTC Pricing Claim Guidelines

  • •
    Original Price Verification: Demonstrate that the reference price represents a genuine, recent market price, not an artificially inflated number
  • •
    Comparative Pricing: Show actual price differences, avoiding deceptive comparisons that might mislead consumers
  • •
    Percentage Disclosure: Clearly calculate and display the exact percentage reduction from the original price

Recommended Disclosure Format

Acceptable Example

Original Price: $100
Current Price: $75
Discount: 25% OFF (Valid 1/1/2025 - 1/31/2025)

Non-Compliant Example

HUGE SALE! Was $500, Now $75!
(Misleading without context)

Record-Keeping Requirements

Documentation

Maintain records proving:

  • •Original pricing history
  • •Discount calculation methodology
  • •Offer duration specifics

Automate Compliance with Growth Suite

Growth Suite helps merchants maintain pricing transparency by generating unique, time-limited discount codes with clear expiration parameters. The platform's dynamic offer system ensures that discount claims are precise, traceable, and aligned with FTC guidelines. By automatically managing code generation, tracking, and expiration, Growth Suite reduces the risk of inadvertent pricing misrepresentations while providing merchants with comprehensive analytics to validate their promotional strategies.

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Muhammed Tüfekyapan

Muhammed Tüfekyapan

Founder & CEO of Growth Suite

With over a decade of experience in e-commerce optimization, Muhammed founded Growth Suite to help Shopify merchants maximize their conversion rates through intelligent behavior tracking and personalized offers. His expertise in growth strategies and conversion optimization has helped thousands of online stores increase their revenue.

E-commerce Expert Shopify Partner Growth Strategist

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